FinLab investment Iconiq Lab Holding GmbH has recently completed a seven-digit financing round with Hightech Gründerfonds (HTGF III) and FinLab AG.The money is to be used to further develop the Asset Management as aService (AMaaS) platform. This platform is intended to help external assetmanagers to implement crypto strategies. GBC analyst Cosmin Filker spokewith the FinLab Management Board member Juan Rodriguez about the potentialof this platform and the latest developments in other investments.

GBC AG: Mr Rodriguez, Iconiq Lab's recent financing round is to be used todevelop the Asset Management as a Service platform. Can you give us moredetails about this product?

Juan Rodriguez: AMaaS is a 360-degree service platform for crypto assetmanagers to optimize the execution of their own crypto investmentstrategies. The AMaaS ecosystem comprises a seamless portal through whichmanagers may digitally launch regulated financial vehicles, executetransactions through an aggregated orderbook from global crypto exchanges,engage licensed crypto custodians as well as world-class auditors, banks,fund accountants and other vital fund service providers. The AMaaS platformis secured by the ICON Vault, a bespoke, secure digital wallet solutionutilizing cold and hot storage solutions. AMaaS is the infrastructuresupporting the Iconiq Funds' crypto asset index funds and is now availableto any external crypto asset manager.

GBC AG: The crypto markets have been characterised by negative trends inrecent months (publicity, volatility, etc.). How do you assess the currentmarket situation and what impact does this have on Iconiq Lab's product?

Juan Rodriguez: Basically, your question is about crypto currencies, whichwe, like Iconiq Lab, do not generally invest in. FinLab has not invested inany crypto currency or token to date, and will not do so in the future. Weonly invest in companies that work and earn their money with a businessmodel on or with blockchain. In the long run, blockchain will be the mediumthat reduces intermediaries and creates the greatest possible transparency.

Blockchain is an issue for the long-term. The internet did not emergeovernight either, so we consider our investments to be long-term. Thenegative headlines only result from the high volatility and extreme pricefluctuations. But I will come back to your question specifically. IconiqLab's product will in particular offer significant transparency and veryhigh quality products to the end customer. At this time, crypto productsare not necessarily characterised by a high degree of transparency andquality. They are rather more geared towards the speculative and short-termtrading of crypto currencies. However, this must change in the short term.The quality and transparency of the markets will be improved as a result ofinstitutional players, such as Vontobel, entering the market, in additionto the shift from ICOs (Initial Coin Offerings) to STOs (Security TokenOfferings) and the associated increase in investor rights (e.g. voting anddividend rights). This should also result in greater price stability.

GBC AG: Deposit Solutions, which runs an Open Banking platform, is theflagship of your investment portfolio. The most recent financing round wasconducted at a valuation of USD 500 million, whereas its value at the timeof FinLab's initial investment was just USD 25 million. Deposit Solutionsrecently announced the entering in the US market. What potential do you seein this?

Juan Rodriguez: Deposit Solutions (Deposit) is currently active in Germanyunder the brand Zinspilot and in the Netherlands and Austria under thebrand Savedo. It is also active in Switzerland since last week. OtherEuropean countries will follow in 2019. In addition to B2C business via theaforementioned channels, we have connected various large POS (Point ofSales) such as Deutsche Bank and FFB (Fidelity Fund Bank) to the platform.

By entering the Swiss market, we are opening up the funding channel forforeign currencies for our product banks. For example, a German bank canoffer investments such as overnight and fixed-term deposits in Swiss francs(CHF). The same applies to the USA and the US dollar. Vice versa, US orSwiss banks could also offer their product range to European customers viaDeposit. Ultimately, we are using Deposit's platform and the unique single-account solution to give B2C customers access to a wide range of products.The platform also simplifies the process of sourcing retail investments forproduct banks without using expensive proprietary retail infrastructure(e.g. branches and marketing).

GBC AG: The authentication solution from Darmstadt-based AUTHADA, anotherportfolio company, is being used for the first time by the direct bankcomdirect. Should this be seen as a milestone?

Juan Rodriguez: The milestone is the solution behind it, which has beendeveloped by AUTHADA. The solution meets all the requirements of the GermanMoney Laundering Act, the German Banking Act and the Federal Office ofAdministration. To this end, the solution(s) guarantee(s) maximum securityand is/are certified by the Federal Office for Information Security.

The authentication solution identifies the customer in seconds and they canbe immediately activated by any bank or service provider. A major advantageis the elimination of the media disruption that occurs when using postal orvideo identities. Banks experience significantly reduced conversion andonboarding times, and thus incur far lower costs. As one of the leadingonline banks, comdirect recognised this at a very early stage andintroduced it last year. In addition to comdirect, we have other banks -both online and offline - in the sales pipeline, ready to introduce ourservices in 2019.